| Local companies to tap into new JSE initiatives |
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| Written by Chamwe Kaira | |
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Namibian companies will benefit immensely from new initiatives by the Johannesburg Stock Exchange (JSE) to expose African stocks to larger markets through the establishment of the Africa Board Index and the Pan Africa Index. Nicky Newton-King, Deputy CEO of the JSE, told the Economist that the new initiatives would target listed and unlisted Namibian companies.
A number of companies listed on the JSE are already dual-listed on the
Namibian Stock Exchange. But Newton-King said the new initiatives offer
more benefits.
The initiative will not affect primary listings in Namibia and the rest of Africa. Maureen Dlamini, the Executive Head of the JSE, said the South African bourse is discussing with the London Stock Exchange as it develops the two indices, which are expected to be launched soon. “The Africa Board will be appropriately branded to reflect country representation and economic sector representation,” said Dlamini. “We are recruiting companies now. The whole of Africa is our priority,” said Dlamini. As part of its African strategy, the JSE has been working with other African stock exchanges mobilising their support for the initiative. Dlamini said the Africa Board listing requirements would be similar to the JSE’s Main Board listing requirements for quality and to maintain integrity. Newton-King said African stocks would get maximum exposure through the new initiatives, as traders from around the world will have access to the two indices. She gave an example of Anglo American, which she said has been trading more shares ever since it moved its primary listing to London a few years ago. In the same vain, she believes that exposure through the London bourse will result in more trade for African stocks. “There are more eyeballs on the screen,” she said, referring to the increased exposure. “If we bring companies to the board, it will increase their accessibility.” African stocks will not have problems attracting investors, according to Dlamini, because African economies have recorded four consecutive years of growth of around 5%. Already, leading investments houses have launched about 18 funds in Africa. Dlamini said the initiatives are focused on Nigeria, Ghana, Zambia, Kenya, Morocco and Zimbabwe. |
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